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Unformatted text preview: of an excise tax. 4. Show how the price elasticity of supply impacts on this division of the burdens of an excise tax. 5. As an alternative to #1 above, show the impact of the tax by shifting the demand schedule. 6. Some people say that a tax "paid by / collected from consumers" has a different effect from a tax "paid by / collected from producers". What do you say? Note: LR11, page 90 includes a section on The Algebra of Tax Incidence. This is worthwhile review, to prove more rigorously the diagrammatic conclusions we will develop in class. Once again, there is no need to memorize formulae....
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This note was uploaded on 08/24/2010 for the course ECO 100 taught by Professor Indart during the Fall '08 term at University of Toronto- Toronto.
- Fall '08